NextGeneration for Fashion: 9th of june! We all remember the days that you, being a succesful brand, fully relied upon your existing physical retail channel. You created 4 collections a year, you presold those to your retailchannel, you got them produced, they arrive at your warehouse, you distribute everything as quickly as possible, your warehouse is empty, your invoices get paid, and you prepare to start the same process all over again.
Fashion: are we going vertical?
NextGeneration for Fashion: 9th of june!
 
We all remember the days that you, being a succesful brand, fully relied upon your existing physical retail channel. You created 4 collections a year, you presold those to your retailchannel, you got them produced, they arrive at your warehouse, you distribute everything as quickly as possible, your warehouse is empty, your invoices get paid, and you prepare to start the same process all over again.
 
Wholesale and wholesale alone
Selling directly to your end-customer never was even a consideration: you were not going to compete with your existing channels! Starting a B2C shop as a brand was simply not done…. But then your retailers encountered the direct results of the crisis, and of the ever more existing online business. Turnover dropped rapidly. And as a result of that, next season your own presales dropped by 40%...
 
Your retailer only wants to order the absolute minimum. On the other hand he would really like to re-order, after the little stock he bought is sold. So, suddenly, your existing channel forces you to buy stock, to setup B2B portals, and to facilitate in the shortest time-to-market possible. Brandowner, were you still so destined not to compete with your existing channel..? No, you were not, obviously.
 
Going digital
So, you did start that B2C shop to sell directly to your end-customer. How to handle single pieces, and how to handle all those returns? You simply didn’t have a clue. But hey, we’re gonna find out.. how hard can it be?
 
How hard that was, you found out after the first year, when our turnover barely covered the costs made… Suddenly we had to act as a retailer. However, that we had to take that step was evident, following the imminent decline of the existing channel. While selling directly on the internet, and thus as a retailer, we also want our products to be visible in the stores. Since the retailer wasn’t buying a fraction of our collection, we developed our own consignation collections, consisting at first of mainly never out of stock items. So, again, we have to keep items on stock.
 
Going vertical, even more
If we wrap up the above, as a brand we see that we don’t only produce based on our preseales, and we don’t only sell indirectly to our end-customer anymore. This is going to be interesting.. we almost act as a retailer!
 
Oh well, let’s take that last step and open our own stores. And that’s what is happening right now. More and more brands open their own brandstores. Some brands are still in the experimental phase, other brands open store nummer 50. The Fashion brand is going vertical, and there seems to be no way back.
 
Next generation for fashion! 9th of june, Utrecht! 
Put all of this against your IT needs… Remember when we could still work on a closed on premise ERP system, concentrating on collection, presales, purchase, delivery, invoicing,  and over and over repeat that process? Today’s fashion brand is a production company, a wholesale company, and a retailer. So, you as a brand can choose to knit all kinds of solutions to your existing core ERP. Or… you can adapt the future, and ask the guys from IT’s Perfect how chain integration really works.
 
Do you, as a Dutch brand, want to discuss the above with us and other fashion entrepeneurs? IT’s Perfect facilitates a networking event in the Utrecht area on the 9th of june, 15:00h, called NextGeneration! Meet us, and network afterwards. IT’s time for the NextGeneration for Fashion! We hope to welcome you on the 9th! Register now: http://www.itsperfect-solutions.com/nextgeneration
 
Paul Jonker
www.itsperfect-solutions.com
 
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